Texas Refund Requests Are Due in April for Cable Television, Internet Access, and Telecommunications Service Providers

The Texas Comptroller announced that April 2, 2018, is the deadline for providers of cable television, internet access, or other telecommunications services to submit a refund request for tax paid in 2017 on qualifying purchases.

The refund opportunity for these purchases is 6.25% of paid Texas state sales and use tax and is part of an annual incentive under Texas Administration Code Rule 3.345.

Qualifying Purchases

To qualify, a purchase must be tangible personal property for which Texas sales and use tax was paid. It must also be purchased, leased, or rented by a provider or its subsidiary and directly used or consumed by the provider or subsidiary during the distribution of one or more of the following:

  • Cable services
  • Provision of internet access
  • The transmission, conveyance, routing, or reception of telecommunications services

Other Considerations

Refunds are capped at $50 million. If qualifying claims total greater than $50 million, refunds will be made on a pro rata basis.

If the provider filing the claim is a subsidiary, it must also include information identifying its parent company.

We’re Here to Help

If you have any questions about submitting refunds, or if you’d like more information about how this refund could potentially help your business, contact your Moss Adams professional or email statetax@mossadams.com.